Strayer Education Inc.STRA

Morningstar Rating

Stock Research and Analysis

by Todd Young

Strayer Education is one of the best-run companies in the for-profit education industry. Favorable industry dynamics, along with the company's focus on working adults, has helped the company establish a wide economic moat, in our opinion.

For-profit Read more

Bulls Say

Online education is growing very rapidly, and Strayer is a key player with more than two thirds of its students taking at least one online course.

Strayer has minimal exposure to private student lending with less than 3% of revenue coming from private student loans.

With a majority of its students being part-time working adults above the age of 31, Strayer is less likely to have students drop out because of financial troubles. Read more

Bears Say

A weakening economy could put pressure on students who receive tuition assistance from their employers.

Education is a highly regulated industry, and high student debt loads could attract adverse regulation.

Strayer will need to increase spending as it opens new programs across the country. This will put pressure on profitability. Read more

Strategy

Strayer's strategy is to maintain enrollments in mature markets, add campuses in new markets, and expand its online programs. Strayer is also focused on expanding its corporate alliances. Company-financed Read more

Management

Strayer gets our highest grade for stewardship. Robert Silberman has been the CEO since 2001 and became the chairman in 2003. Splitting these roles and adding insight into how executive bonuses are calculated are the only significant practices we would Read more

Profile

Strayer is a for-profit education company with 71 campuses in 15 states and Washington, D.C. It serves students in all 50 states and 30 different countries through its online Read more

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